Emaskayu Vol 6 2023 - 3
Emaskayu Vol 6 2023 - 3
Emaskayu Vol 6 2023 - 3
ISSN 0126 - 77 1X
Volume 6 | J U N E 2 0 2 3
3 4
19 32
Highlight
MTIB APPRECIATION CEREMONY (50 Tahun Teguh Seiring
3 Usia)
Chief Editor
Dr. Mohd Nor Zamri Mat Amin
5 Knowledge Sharing on Timber Sector Programme
Editorial Members
6 Briefing on the MTIB CB’s Product Certification Scheme Saiful Bahri Salleh
Noorazimah Sarkom@Haji Othman
15 Jordan: Construction Sector Gets Major Boost Mohd Amin Kadir
Mohd Nizam Hamid
30 Engkabang Farydatul Nazly Mohd Zin
Suzana Abdul Rahim
Nor Liza Mat Yasok
Suga @ Mazree Iman
Publisher
Malaysian Timber Industry Board
Level 13- 17, Menara PGRM, 8, Jalan Pudu Ulu
Cheras, 56100 Kuala Lumpur, Malaysia
Tel: 603 9282 2235
Fax: 603 9200 3769 / 9283 9792
E-mail: info@mtib.gov.my
Website: www.mtib.gov.my
7 Timber Round-up
25 Domestic News
28 Shipping News
read eMASKAYU at
32 MTIB Moments
www.mtib.gov.my
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Timber News
MASKAYU | | Vol 6 / 2023
Welcoming speech by
The Honorable Datuk Larry Sng Wei Shien
Chairman MTIB
The briefing commenced with an insightful presentation Among the attendees were members of the MTIB CB’s
titled Importance and The Needs of Certification by committee, representatives from statutory bodies,
Puan Nadhiah Nadhirah Che Abbas from SIRIM QAS timber associations, universities, and panel-based
International Sdn. Bhd.. Her presentation shed light on industry. Throughout the event, attendees had the
the important aspects and criteria for certification. opportunity to engage in fruitful discussions, exchange
ideas, and gain valuable knowledge. The presence of
Puan Habibah Ahmad, Deputy Under-Secretary of the
Timber, Tobacco and Kenaf Industry Development Unit
from the Ministry of Plantation and Commodities (KPK),
further underscored the government’s commitment
to supporting the timber industry’s growth and
development.
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Timber News
MASKAYU | | Vol 6 / 2023
Bumiputera contribution to the export market was still less than 1.0% of the total timber and timber products exports
in 2022. Among the causal factors identified are lack of knowledge on the needs of market segmentation products,
export procedures, export market pricing, and payment procedures.
As such, in line with MTIB’s role in advancing the competitive strength of Bumiputera entrepreneurs in the wood industry,
MTIB organised a Road to Export/Global Market workshop on 13-15 June 2023, at the Imperial Heritage Hotel, Melaka.
The aim of the workshop was to increase awareness towards the needs of the export market through the practise of
7Ps Marketing, and to provide up-to-date information on potential export markets, terms and procedures of payment
claims for export markets, maritime export procedures, INCOTERM terms, and escort documentation.
YBrs. Dr. Mohd Nor Zamri Mat Amin, Director General of MTIB, delivered the opening remarks. In his speech, he stated
his hopes that the workshop would provide the entrepreneurs with the opportunity to expand their knowledge and
become successful exporters.
Also present at this workshop were senior officers from MTIB, Malaysia External Trade Development Corporation
(MATRADE), Alliance Bank, Maju Senja Sdn Bhd (Forwarding Agent), One Tech (M) Sdn Bhd, and FACTS Consultance.
On the third day, the participants had the opportunity to visit export factories, namely Deep Furniture Sdn Bhd in Muar
and Honsoar Jaycorp Cabinetry Sdn Bhd in Batu Pahat.
A total of 16 Bumiputera entrepreneurs attended the workshop, including officers from MTIB.
Timber Round-Up
MAY 2023
The total export of Malaysian timber and timber products in May 2023 increased by 33% in value totalled at RM1.9
billion from RM1.4 billion in the previous month. However, cumulative exports for the period of January - May 2023
decreased by 25% valued at RM8.3 billion over RM11.0 billion in the previous corresponding period. GlobalData’s latest
report, “Construction Market Size, Trends, and Growth Forecasts by Key Regions and Countries, 2023–2027” states
that the worldwide construction industry widened by 2.1% in real terms in 2022, with the speed slowing from the 3.8%
growth that was recorded in 2021. Furthermore, the international construction sector’s progress is predicted to remain
sluggish this year, expanding just by 0.8%. Excluding China, the sector is predicted to contract by 0.1% because of
weak economic backdrop as well as additional issues that are specific to the global construction segment, like high
construction material costs and shortage of labour. This deceleration goes on to reflect the challenging landscape in
most of the markets across the world in the form of tightening monetary policies that go on to dampen investment
and high inflation. Apart from China, which went on to post a 5.5% expansion in 2022, the international construction
sector edged up just 0.6%. A steep decline in US construction activity in real terms happened to be a key factor in the
weak global outturn of 2022, teamed with a slowdown across Europe, where major markets have been fighting really
hard due to the energy crisis.
The expected poor performance this year indicated that the downturns taking place across the developed nations,
with the entire Europe expected to shrink by 2.8%. Besides this, the North American market is expected to fall by
0.9%. Australia & Oceania is not going to be any different, as it will witness a contraction of 1.5%. Growth in the
emerging markets is going to be positive; however, the growth pace will slow to 2.4% from what it was in 2022, i.e.,
4.6%. GlobalData forecasts that the worldwide construction sector is anticipated to regain some momentum when it
comes to growth in 2024, assuming that there will be an improvement in global economic stability wherein the output
will expand by 3% and there will be an annual average of 4.2% across 2025–2027. It is to be noted that most of the
markets will suffer a significant downturn this year because of weak investment growth as well as high prices when
it comes to key construction materials as well as energy costs, which is a trend that has seen an elevation due to the
ongoing Ukraine war. The underlying instability related to macroeconomic aspects has pushed down growth in North
America, especially in the residential sector, which has suffered the most as a result. The inflationary pressure is
starting to subside, and the Federal Reserve is starting to bring down rate hikes, all of which have led to better growth
recovery. The prediction when it comes to the latter half of the forecast period, has been pushed hard by a robust
outlook on the infrastructure construction in the US.
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Thailand recorded a fall in MDF import by 59% to 266 m³ Jul 31.7 93.9
to the South Asia market, exports increased by 128% to Feb 42.6 69.3
9,202 m³ from 4,023 m³. Export performance to India, Mar 35.2 117.8
to 5,834 m³, 151% to 2,474 m³ and 3835% to 787 m³ May 39.6 107.7
each. 0.0 30.0 60.0 90.0 120.0 150.0 180.0
Meanwhile, MDF import in North America decreased by Export of veneer for May 2023 increased in volume by
6% from 2,888 m³ to 2,719 m³ compared to the previous 59% to 4,291 m³ and 72% in value worth RM9.0 million
month. Canada and Mexico reduced their purchases as compared to the previous month. The cumulative
by 37% and 20% to 288 m³ and 281 m³ respectively. exports for May 2023 showed an increase in volume by
Meanwhile, USA increased purchases by 3% to 2,150 m³. 3% to 16,419 m³ but a decrease by 5% in value to RM30.8
The Africa region showed a decrease of MDF import by million over the previous corresponding period.
66% from 1,021 m³ to 346 m³ with purchases from South
Africa. Algeria, Egypt and Chile didn’t make purchase for ASEAN recorded a decrease in veneer import by 14%
the month. from 1,273 m³ to 1,100 m³. The Philippines reduced its
import by 13% to 1,100 m³ while Singapore and Brunei
The FOB price of MDF increased by 1% to RM1,740 per didn’t make any purchase for the month. In East Asia,
exports rose by 180% from 895 m³ to 2,501 m³. Japan
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Timber Round-Up
MASKAYU | | Vol 6 / 2023
recorded an increase in buying by 88% to 428 m³ while Moving to the East Asia market, volume increased by
China decreased imports by 1% to 658 m³. Taiwan 142% to 72,158 m³ from 29,871 m³ in April. Japan as
resumed its buying with 1,195 m³. Likewise, South Asia the largest importer added up the buying by 190% to
increased imports by 20% to 336 m³. India added up the 54,459 m³ from 18,763 m³. Likewise, South Korea and
buying by 27% to 283 m³ while Bangladesh purchases Taiwan increased their purchases by 92% and 31% to
declined by 9% to 53m³. 8,669 m³ and 8,261 m³ respectively. In the ASEAN region,
imports increased by 52% from 2,842 m³ to 4,331 m³.
Moving to North America, veneer purchase decreased by Plywood export to Singapore, Thailand and Brunei grew
45% from 229 m³ to 126 m³. The USA reduced buying by by 44%, 39% and 75% to 1,861 m³, 1,620 m³ and 431 m³
73% to 62 m³ while Canada resumed its purchase with respectively.
64 m³. On the other hand, the Oceania/Pacific region
added up their purchases significantly by 991% to 229 In the South Asia region, plywood purchase increased
m³ with the purchase being from Australia. by 4% from 1,434 m³ to 1,497 m³. India and Maldives
increased imports by 2% and 23% to 1,253 m³ and 244
The average FOB price for veneer increased by 8% from m³ each. West Asia region also recorded an increase of
RM1,931 per m³ to RM2,092 per m³ as compared to the 15% to 13,387 m³ from 11,606 m³ in the previous month.
previous month. Import performance in Yemen and Jordan surged by 28%
and 40% to 12,122 m³ and 689 m³ respectively. However,
The growing demand for sustainable building materials Saudi Arabia reduced purchases by 7% to 512 m³.
and the increasing popularity of wood-based products
in the construction industry are the major factors driving In the Africa region, purchases increased by 130% from
the veneer market. The global veneer sheet market is 453 m³ to 1,042 m³. Plywood purchase in South Africa
forecast to rise at CAGR 0f 1.7% from USD15.7 billion in decreased by 21% to 115 m³. Meanwhile, Somalia, Kenya
2022 to USD 18.5 billion in 2030 due to rising demand for and Jamaica resumed their intakes with 900 m³, 21 m³
furniture, wall and floor covering materials. In Australia, and 21 m³ each.
despite the rise of hybrid and laminate flooring, natural
timber flooring remains a popular choice among North America increased imports by 1% from 6,348 m³
homeowners, embracing the beauty of natural wood. to 6,387 m³. The USA as the main buyer slightly reduced
Thus, the demand for timber flooring is increasing as purchases by 0.4% to 5,177 m³ while Mexico increased
these materials are renewable, requires less energy to its buying by 10% to 1,188 m³. For the Oceania/Pacific
produce and reduces carbon footprint. region, plywood imports increased by 89% to 3,912 m³
from 2,074 m³. Australia improved buying by 92% to
3,818 m³ while New Zealand reduced purchases by 0.2%
Plywood to 41 m³. Vanuatu resumed its purchases with 21 m³.
The FOB price of plywood for May 2023 was at RM2,291
per m³, an increase of 2% from RM2,251 per m³ from the
previous month.
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Thousand M3
80.0 -
-
60.0 -
Exports to the EU for the month were recorded at 11,575 -
m3, increased by 71% as compared to the previous 50.0 -
-
May-22 Jun Jul Aug Sep Oct Nov Dec Jan-23 Feb Mar April May
Average FOB unit value for mouldings decreased Exports to the EU increased by 16% to RM106.7
marginally to RM2,855 per m3 compared to RM3,669 per million compared to RM92.4 million in the previous
m3 in the previous month. corresponding period. Exports to Sweden and Belgium
increased by 140% and 52% to RM26.1 million and
The global construction industry recorded a marked RM30.8 million while Germany decreased buying by 6%
slowdown in output in real terms (constant prices) to RM12.3 million respectively. Meanwhile, exports to
in 2023, with an expansion of just 0.7%, down from Norway and Turkey decreased by 91% and 58% to RM1.7
2.2% growth last year. The deceleration reflects the million and RM618,898 while the UK also decreased its
challenging conditions in most markets around the intake by 12% to RM49.4 million for the month.
world in the form of high inflation and a tightening in
monetary policies that has dampened investments. In Asia, exports to Singapore recorded an increase of
Excluding China, the global construction industry will 81% to RM52.6 million while Viet Nam and Thailand
contract by 0.6% in 2023, following a marginal expansion decreased their intakes by 75% and 27% to RM2.6
of 0.6% last year. The gloomy prediction for 2023 reflects million and RM4.1 million respectively. Exports to China
ongoing weakness in the US, which shrank by 8.2% last and Taiwan decreased by 72% and 33% to RM3.4 million
year, along with an expected contraction of 3.3% in and RM2.4 million while Japan increased buying by 14%
Western Europe. In many markets across Europe there to RM24.4 million respectively. Nevertheless, exports to
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Timber Round-Up
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Maldives and Bangladesh recorded an increase of 329% Export of wooden furniture to ASEAN expanded by
and 39% to RM3.2 million and RM1.2 million while India 24% worth RM518.0 million from RM418.5 million in
decreased buying by 50% to RM8.8 million for the month. its corresponding period 2022. Export to Singapore
Meanwhile, the UAE increased imports by 194% to RM1.6 increased by 39% to RM316.2 million. Similarly, export to
million, Saudi Arabia fell 3% to RM218,319 whilst Iran Indonesia rose by 61% to RM53.3 million, but export to
resumed its intake with RM180,293 for the month. the Philippines declined by 2% to RM83.9 million for the
stated period.
In the Oceania/Pacific region, export to New Zealand and
Australia decreased by 19% and 13% to RM8.1 million Moving to the East Asian region, exports were down by
and RM84.9 million while Western Samoa improved 38% to RM230.1 million from RM367.9 million year-on-
its purchases by 200% to RM807,261 million. However, year in 2022. Japan remained the highest buyer with an
in the America region, Mexico and Uruguay increased import value of RM170.4 million despite a reduction in
their purchases by 60% and 16% to RM10.3 million its buying by 36%. Similarly, exports both to China and
and RM660,616 while the US and Canada dropped Taiwan reduced by 23% to RM20.8 million and by 54%
their intakes by 32% and 7% to RM111.5 million and to RM17.9 million, respectively over its corresponding
RM700,149 for the month. period 2022.
Elsewhere, in the Africa region, South Africa reduced Export to West Asia expanded by 2% to RM169.9 million
its intake by 45% to RM2.0 million while Seychelles from RM166.2 million in its corresponding period in
increased its intake by 482% to RM1.5 million whereas 2022. Export to the UAE, the largest buyer in the region,
Libya resumed its purchases with RM830,633 for the improved by 22% to RM83.2 million. Similarly, exports
month. to Saudi Arabia increased by 7% to RM63.0 million,
however export to Kuwait declined by 54% to RM9.1
Globally, residential construction has generally recovered million, respectively.
well from the downturn in 2020 amid the COVID
disruption, with government incentive schemes and Moving to South Asian region, export of wooden furniture
a build-up of household savings helping to drive up to the region weakened by 47% to RM44.7 million for the
residential building work, particularly on the renovation month. Amongst South Asian countries, India recorded
side to improve energy efficiency. However, with rising the highest intake with export value worth RM39.8
interest rates and a squeeze on household incomes from million despite a decrease in intake by 50%. However,
rising cost of living, as well as house builders having to exports to Maldives and Bangladesh improved by 44%
pass on the surge in construction costs, growth in the to RM4.0 million and by 5% to RM704,208 respectively.
residential sector slowed sharply in 2022, and is now
predicted to contract by 7.8% in 2023, and drop further Despite export to the Central Asia region improving by
by 1.9% next year. Hence the demand for construction 24% to RM2.1 million, intake from Kazakhstan reduced
activities is likely to get impacted due to recession by 17% worth RM1.3 million. Meanwhile, Uzbekistan
pressure. and Armenia resumed its intake at RM261,243 and
RM515,706 respectively.
Furniture Export to the European Union recorded a decrease of
33% to RM128.6 million from RM192.3 million over its
corresponding period in 2022. Belgium as the highest
buyer in the bloc reduced its buying by 8% to RM17.4
million, followed by France with imports down by 13%
to RM16.7 million. Similarly, export to Germany also
slashed by 51% to RM16.6 million.
Moving to the Central America region, export of wooden a reduction in its buying by 16%. Meanwhile, Bangladesh
furniture reduced by 18% to RM10.3 million over its resumed its buying ar RM2,456 for the said period.
corresponding period in 2022. Panama recorded the
highest intake of wooden furniture for the cumulative Export to the West Asian region improved by 479% to
period despite a decrease of sale by 10% to RM3.3 RM1.3 million from RM223,163 over its corresponding
million. Likewise, exports to Guatemala and El Salvador period in 2022. The largest buying nation of rattan
also declined by 1% to RM2.2 million and by 32% to furniture in the West Asian countries, Saudi Arabia
RM2.1 million respectively. resumed its intake to RM677,142 and similarly with
Kuwait, the country resumed its intake at RM73,251.
Meanwhile, export to the North America region dropped Meanwhile, exports to the UAE improved by 116% to
by 45% to RM1.8 billion from RM3.2 billion in its RM482,894.
corresponding period in 2022. Despite the USA being
Malaysia’s largest wooden furniture buyer, the country Moving to the European Union bloc, exports were down
recorded a reduction in sales by 46% to RM1.6 billion by 48% to RM3.1 million with France being the largest
from RM3.0 billion in its corresponding period in 2022. buyer amongst EU countries. Exports to France and Spain
Similarly, exports to Canada and Puerto Rico decreased grew by 38% to RM964,904 and by 14% to RM440,029
by 23% to RM103.0 million and 47% to RM22.6 million respectively. However, export to Ireland was down by
respectively. 74% to RM353,454 for the mentioned period. Moving
to other European countries, demand from the group
Similarly, export of wooden furniture to the South America declined by 3% to RM3.8 million with the UK being the
region recorded a decrease of 47% worth RM27.5 million largest buyer in the region. The UK increased its buying
from RM52.1 million in its corresponding year in 2022. by 21% to RM3.3 million. However, Russia reduced its
Export to Chile decreased by 67% to RM14.0 million
from RM41.9 million in its corresponding period in 2022. Malaysia: Export of Wooden Furniture
Jan 2022 - May 2023 (RM million)
Export to Peru increased by 63% to RM6.7 million, while 1200-
Ecuador resumed its buying at RM1.8 million for the said -
period. 1000 -
-
Exports to African recorded a decrease of 30% to
RM56.9 million with South Africa garnering the largest 800 -
Export to ASEAN member countries was recorded at Shipments to the Oceania/Pacific archipelago region
RM2.5 million, an increase of 35% for the cumulative dropped by 34% to RM2.6 million from RM3.9 million over
period of January – May 2023. The highest buyer was the same period in 2022. Australia recorded a decline in
the Philippines with recorded sales of RM1.3 million, an intake by 38% to RM2.2 million. Similarly, exports to New
increase of 90%. Similarly, exports to Singapore grew by Zealand decreased by 13% to RM213,061. Meanwhile,
60% to RM814,683. However, exports to Thailand were Fiji resumed its buying at RM103,863.
down by 44% to RM246,261.
Export to the North American region decreased by 65%
Export to the East Asian region was worth RM2.8 to RM7.7 million from RM22.1 million over the same
million, a reduction of 24% from RM3.6 million over its period in 2022. The USA being the largest buyer for
corresponding period. China reduced its intake by 12% rattan furniture recorded a decline in intake by 62% to
to RM1.7 million, followed by Japan whose imports RM7.5 million, followed by Canada with imports down by
were reduced by 18% to RM774,825. South Korea also 85% to RM283,678 million. Meanwhile, amongst South
reduced its buying by 42% to RM138,983. Moving on to American countries, Uruguay resumed its intake at
South Asian countries, India was recorded as the highest RM35,624. Intake of rattan furniture by the African region
buyer of rattan furniture valued at RM1.2 million despite also declined by 78% to RM325,987 where Republic
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Timber Round-Up
MASKAYU | | Vol 6 / 2023
of Congo and Cote D’Ivoire resumed their buying at Moreover, the ongoing infrastructural development and
RM142,818 and 64,535 respectively. Meanwhile, exports construction of residential, industrial, and commercial
to South Africa reduced by 75% to RM47,334. facilities will further fuel market growth. Furniture
The European Commission has established a new limit manufacturers in India are embracing advanced
for the concentration of formaldehyde in the air of “living technologies like the Internet of Things (IoT) to gain a
environments”: Regulation 2023/1464, published on 14 competitive edge in the market. By incorporating IoT
July 2023, cuts the previous values by setting the limit services, manufacturers can enhance their capabilities
to 0,062 mg/m3 for the emission of this substance in areas such as design management, performance
considering, in particular, wood-based products and tracking, and maintenance. This adoption of IoT is
furniture as possible “sources” of formaldehyde. The anticipated to be a significant driver for the growth of
provision prescribes a new limit which is exactly half the Indian furniture market in the foreseeable future.
of the value indicated in 1989 by the World Health
Organization (0.124 mg/m3), on which the well-known The Indian furniture market is highly competitive and
and consolidated E1 classification is based. The E1 is, up fragmented in nature. While the market has traditionally
to now, not only the recognised standard of the sector, been dominated by small, unorganised local firms,
but it is also the reference class legally adopted by many organised players have gradually increased their
European countries. It is undoubtedly worth highlighting presence in the Indian furniture sector, and the entry of
that, for the first time, the whole European wood and multinational companies is expected to further bolster
furniture sector must adopt a precise “rule” from the their market share. Several new players are expected
European authorities which, unlike the E1 classification, to enter this market due to low entry barriers. The
must necessarily be applied by all European countries, advent of e-commerce has significantly enhanced the
obviously involving also all products imported into the EU. convenience of furniture shopping, providing retailers
Companies in the sector will have three years to comply with the ability to reach customers worldwide. This
with the new Regulation. This period of time is necessary expanded reach has enabled furniture retailers to offer
for the European Chemicals Agency (ECHA) to define, an extensive range of products, including rare and
with the involvement of the European associations and exclusive items that were previously inaccessible in
organizations involved, the proper guidelines on test various markets. However, the impact of e-commerce
methods. extends beyond convenience alone. The utilisation of
data-driven insights has been instrumental in the growth
On another news, the Indian furniture market has of online furniture sales. By harnessing the wealth of
undergone significant transformations over time, data provided by e-commerce platforms, furniture
expanding beyond basic chairs and tables to encompass retailers can make well-informed decisions regarding
a wide range of interior furnishings such as wardrobes product assortment, pricing, and effective marketing
and sofas. Several factors contribute to the growth of strategies. However, the online segment is projected
the Indian furniture industry. The rising demand for to witness the highest CAGR during the forecast period
modular and contemporary furniture among urban as more furniture companies launch websites and sell
dwellers, increasing urbanisation across Indian states, their products through popular e-commerce platforms
and a growing preference for durable and hybrid seating targeting younger and working consumers. By 2023, the
furniture are driving the market expansion. This upward revenue of the furniture eCommerce market is projected
trend in furniture demand is expected to persist in the to reach USD252 billion, with an expected annual growth
coming years. Additionally, the thriving wood sector in rate of 3.98% between 2023 and 2027 (CAGR 2023-
India helps mitigate furniture production costs, making 2027).
it more affordable. Furthermore, the surge in online and
mobile shopping trends in India is expected to boost
furniture sales through digital channels. The growth
of the Indian furniture market is fuelled not only by
residential demand but also by the flourishing tourism
and hospitality industry as well as the corporate sector.
The expansion of hotels and business offices in the
country contributes significantly to the increasing need
for furniture.
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Market Profile
MASKAYU | | Vol 6 / 2023
Forest Resources
Jordan is very lightly forested where forest cover is
86,000 hectares or about 1% of the country’s land
area. This includes 45,000 hectares of plantation
forests. Jordan’s network of protected areas includes
three national parks, 23 range reserves and 12 wild
Overview nature reserves. The natural forests are fragmented,
Jordan is a country in Western Asia. It is situated at the undermarketed, unmapped and degraded forests of
crossroads of Asia, Africa and Europe within the levant poor density. Because of the low percentage of forest
region, on the East Bank of the Jordan River. Jordan cover, the arid Mediterranean climate, past deforestation,
is bordered by Saudi Arabia, Iraq, Syria, Israel and the heavy grazing and frequent fires and droughts, the
West Bank of Palestine. All these border lines add up to forests and rangelands are unable to provide the needed
1,619 kilometres. The Gulf of Aqaba and the Dead Sea environmental benefits. Jordan’s forests mainly occur
also touch the country, giving Jordan a coastline of 26 in the northern and southern highlands. In the north,
kilometres. Amman is the nation’s capital and largest forests are mainly of mixed-evergreen type dominated
city, as well as the economic, political and cultural centre. by Pinus halepensis and oak (Quercus spp.). To the south
Jordan has few natural resources and no oil. Jordan is the forests give way to cultivated lands with woodlands
a semi-arid country, covering an area of 89,342 square comprising cedar (Cedrela odorata), cypress (Cupressus
kilometers with a population of 11 million, making it the sempervirens), wild olive (Olea europaea) and modest
eleventh-most populous Arab country. The dominant areas of Eucalyptus spp. plantations. The Gulf of Aqaba
majority or around 95% of the country’s population is contains some of the most northern mangrove stands in
Muslim, with an indigenous Christian minority. Jordan the world.
has been repeatedly referred to as an “oasis of stability”
in the turbulent region of the Middle East. Timber Production
Jordan’s arid climate and limited water resources
Economy make agricultural production a precarious endeavor.
Growth in Jordan picked up to 2.8% year on year in the Conversely, with rising temperatures and increasingly
first quarter of 2023, driven by improved performance frequent and severe droughts due to climate change, local
in agriculture, construction, transport and tourism (as farmers are grappling with reduced yields and escalating
tourism receipts surpassed pre-pandemic levels at water scarcity. According to the FAO forest statistics,
last). Unemployment remained high at 21.9% in the first Jordan’s production for 2021 was only wood charcoal
quarter of 2023, with higher rates among women (26.7%) at around 52,147 tonnes. Details of the production are
and youth (43.7%). Meanwhile, inflation eased to 0.9% in as below:
July 2023, following a peak of 5.4% in September 2022,
on the back of elevated prices for global food and energy.
The Central Bank of Jordan has raised its main policy
rate by a cumulative 500 basis points since February
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Market Profile
MASKAYU | | Vol 6 / 2023
JORDAN: MAJOR EXPORT OF TIMBER PRODUCTS (HS CODE 44) BY COUNTRY, 2018-2022
USD ‘000
No. Importers 2018 2019 2020 2021 2022
World 8,228 9,711 12,408 10,801 9,345
1 Saudi Arabia 1,626 1,876 574 1,644 2,300
2 Free Zones 2,310 2,454 3,532 3,223 2,199
3 Iraq 1,428 2,874 5,756 2,851 2,196
4 Syrian Arab Republic 1,124 526 1,254 1,351 1,355
5 Palestine, State of 82 216 208 414 470
6 Egypt 260 58 0 11 264
7 United Arab Emirates 253 155 35 309 147
8 Lebanon 90 20 0 56 142
9 Qatar 538 908 590 449 87
10 Kuwait 176 209 164 158 48
Other 340 415 295 336 138
Source: ITC Stats
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Market Profile
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JORDAN: MAJOR IMPORTS FOR TIMBER PRODUCT (HS CODE 44) BY COUNTRY, 2018-2022
USD ‘000
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Market Profile
MASKAYU | | Vol 6 / 2023
Import Tariffs
The government of Jordan for the past years had made great strides in liberalizing its trade and investment environment.
Jordan’s accession to the WTO in April 2000 signalled its commitment to global integration. Upon accession to the
WTO, Jordan substantially reduced its simple average tariff rate (based on Most Favoured Nation, or MFN, tariff rates).
Jordan’s import duties on timber and timber products under MFN ranged between 0% - 30% and the details of tariff
duties are as follows:
JORDAN: TARIFF DUTY
CODE PRODUCT DUTY (%)
4403 Logs 20
4407 Sawntimber 0
4408 Veneer 0
4409 Moulding 20
4410 Particleboard 0
4411 Fibreboard 20
4412 Plywood 15
4414 Wooden frames 30
4418 Builder carpentary & joinery 30
9403 Furniture & Parts 30
Source: World Trade Organisation (WTO)
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Market Profile
MASKAYU | | Vol 6 / 2023
In the context of inflation and the banking crisis, US He also petitioned the embassies to assist wood
banks have tightened credit, making importers unable to enterprises in opening companies, representative offices
finance import goods in large quantities. The demand for and stores in potential export markets.
US wooden furniture imports has plummeted, analysts
said. www.itto.int, 07 June 2023
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Timber World In Brief
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CHINA tropical sawn timber will average USD 298 CIF per cubic
Resumption of Imports of Australian meter, up 2% from the same period in 2022.
Timber
It has been reported that China has resumed imports Major suppliers of sawn timber imports
of Australian timber. Australia’s timber trade with China Russia is China’s largest supplier of sawn timber imports
was halted in late 2020 after China said it had found in the first quarter of 2023. China’s sawn timber imports
pests in timber coming from several Australian ports. from Russia accounted for 44% of its total sawn timber
imports. China imported 2.878 million cubic meters of
Data show that in 2022 Australia’s timber exports to China sawn timber from Russia, an increase of 4%. Shipments
were worth RMB42.32 million compared with RMB4.13 from second-largest supplier Thailand fell 17% to
billion in 2019 before the ban was implemented. 849,000 cubic metres.
In an effort to get back into the Chinese market Australian China’s imports of U.S. sawn timber have increased. In
officials petitioned China to resume trade and presented the first quarter of 2023, China’s sawn timber imports
evidence of pesticide spraying on logs to Chinese from the US rose by 27% to 326,000 cubic meters. In
Customs authorities. But China did not respond. The ban contrast, China’s sawnwood imports from Canada fell
showed no sign of easing until 2023. by 25% to 326,000 cubic meters in the first quarter of
2023.
In March 2023 Chinese Customs sent Australian
agriculture officials a list of technical rules that must Main sawn softwood sources
be met to resume timber imports.In May the Australian Russia is the largest supplier of sawn timber imports.
Trade Minister, Stephen Farrel, arrived in Beijing for a Nearly 60% of China’s sawn timber imports in the
three-day visit. During the talks the two sides agreed to first quarter of 2023 will come from Russia. China’s
restart economic and trade dialogue mechanisms such sawnwood imports from Russia rose 2% to 2.586 million
as the Joint Committee on Free Trade Agreement and cubic meters, while imports from Sweden, China’s
the High-level Trade Remedy Dialogue. In May China second-largest sawnwood supplier, surged 98% to
announced the resumption of timber imports from 320,000 cubic meters in the first quarter of 2023.
Australia.
In addition to a 26% drop in shipments from Canada
www.itto.int, 19 June 2023 in the first quarter of 2023, China saw an increase in
imports of sawn softwood from major suppliers.
CHINA
Sawntimber Imports Rise in Volume, Russia is the largest supplier of sawntimber for China.
But Fall in Value Nearly 60% of China’s sawn timber imports in the
According to Chinese customs statistics, total sawn first quarter of 2023 will come from Russia. China’s
timber imports in the first quarter of 2023 amounted to sawnwood imports from Russia rose by 2% to 2.586
6.522 million cubic meters, valued at USD 1.658 billion, million cubic meters, while imports from Sweden,
a 3% increase in volume but an 8% decrease in value China’s second-largest sawnwood supplier, surged 98%
compared to the first quarter of 2022. USD 254 per cubic to 320,000 cubic meters in the first quarter of 2023.
meter (CIF) in the first quarter, up 12% from the same
period in 2022. In addition to a 26% drop in shipments from Canada
in the first quarter of 2023, China saw an increase in
Of the total sawn timber imports, sawn timber imports imports of sawn softwood from major suppliers.
increased by 9% to 4.42 million cubic meters, accounting
for 68% of the national total. However, the average price www.itto.int, 15 June 2023
of imported sawn timber fell by 10% to USD 203 per
cubic meter (CIF) compared to the same period in 2022. JAPAN
Domestic Lumber Market Faces Price
Imports of hardwood lumber fell 8% to 2.102 million Stabilization and Supply Challenges
cubic meters, accounting for 32% of the national total. There has been a noticeable halt in the declining prices
The average price of imported sawn timber fell by 10% of domestic logs and lumber in Japan during mid-May.
to USD 362 per cubic meter (CIF) compared to the same The prices of laminated whitewood posts and laminated
period in 2022. cedar posts, which are competitors to KD cedar posts,
have reached their lowest point, leading to controlled
Among the total imports of sawn timber, tropical sawn inventory of imported lumber.
timber imports amounted to 1.372 million cubic meters
with a CIF value of USD 409 million. Compared with the Since the wood shock experienced in spring 2021, the
same period in 2022, the volume and value decreased demand and supply of domestic lumber have been
by 16% and 14%, respectively, accounting for the total closely intertwined with the demand and supply of
import volume of the country. 21% of the total. Imported imported lumber. Consequently, as the inventory of
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Timber World In Brief
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GHANA
Teak Accounts for Most Sawnwood Exports to Asia
In the first two months of 2023 Ghana’s air-dried sawnwood accounted for 54% (24,589 cu.m) of the total wood
exports of 45,312 cu.m, to be the leading export product. These exports earned Euro9.90 million which was 21%
more than in the same period in 2022. In contrast, exports of kiln-dried sawnwood declined 13% (Euro3.52 million in
January-February of 2023 compared to Euro3.72 million for January-February of 2022).
Air-dried sawnwood, together with mouldings and plywood were the only three out of thirteen products that registered
significant year-on-year growth of 14%, 25% and 175% respectively in 2023 when compared to 2022.
India and Vietnam were ranked the first and second in terms of Ghana’s exports of air-dried sawnwood. India absorbed
22,100 cu.m of the product valued at Eur8.35 million with Vietnam 1,072 cu.m which earned Eur0.83 million to become
a major market for Ghana’s air-dried sawnwood.
Between January and April 2023 Asian markets absorbed most of the teak exported from Ghana (27,890 cu.m)
compared to the previous year (26,554cu.m). This was followed by the Middle East where there was a with 1.4%
increase in 2023, however, demand in Europe, regional markets and the US weakened compared to the same period
in 2022.
TIDD data shows that the Asian market accounted for close to 62% of all wood product exports in 2023 as against
60% recorded in 2022.
Five species namely teak (90%), papao (3%), deny (2%), dahoma (1%) and kako/ekki (1%) accounted for the bulk (97%)
of the air-dried sawnwood exports in the first two months of 2023.
Market Profile
Continuation from page 19
Malaysian manufacturers also need to enhance their presence in the Jordan market to create demand for Malaysian
value-added timber products, especially furniture. Malaysian engineered timber products can also be further
promoted since there are opportunities to fulfill future demand in Jordan’s construction industry. Malaysian timber and
furniture exporters can enhance networking and explore business opportunities with their counterparts the country by
participating in trade fairs such as Jordan Home Expo and Jordan International furniture fair.
Through those activities, Malaysian timber exporters would be able to further develop their networking with Jordan’s
timber and furniture importers while at the same time undertake market research on current Jordan importers’ market
preferences and taste. Therefore, it is envisaged that timber trade for both countries, especially in terms of export and
import activities and investments in timber and timber products will be increased in the coming years.
References
• International Trade Centre • https://countryeconomy.com/countries/
• Department of Statistics Malaysia (DOSM) Jordan
• MTIB’s statistics • https://www.britannica.com/place/Jordan
• The World Bank • https://www.jordantimes.com
• http://www.cifor.org • https://www.jordannews.jo
• http://www.fao.org • https://www.meed.com
• https://www.cia.gov • https://www.zawya.com
• https://www.statista.com • https://www.mop.gov.jo
• https://www.worldconstructionnetwork.com
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Domestics Trade News
MASKAYU | | Vol 6 / 2023
MAY 2023
LOGS recorded for the Jelutong species at around 15.4 percent
The average price of logs for most species was reported or RM283 per m3, in the current month. The species were
to have decreased in May 2023, with 45 percent or marketed at an average price of RM2,825, RM1,359,
nine species of the 20 listed as price reference species RM3,263, RM1,746, RM1,401, RM2,631, RM1,907,
experiencing price reductions ranging from 1.2% to RM1,848 and RM2,119 per m3, with an increase of around
14.6% or around RM26–RM410 per tonne. Six species on 1.4% to 15.4%, the equivalent of RM26-RM283 per m3,
the other hand, reportedly saw price increases ranging as reported. Meanwhile, the species that recorded a
from 3.1% to 10% or around RM54 to RM150 per tonne, price decrease were Balau, Kempas, and Red Meranti,
while the average price for the remaining five species with the Balau species recording the highest percentage
remained unchanged. decrease at 7.2 percent, equivalent to RM236 per m3,
and marketed at RM3,055 per m3 in the current month.
Red Balau, Merbau and Mixes Heavy Hardwood from
the Heavy Hardwood Group, Keruing, Kempas, and In the STRIPS production class, approximately 60% or 12
Mengkulang from the Medium Hardwood Group, Dark species reported maintaining their average price in the
Red Meranti (DRM), Yellow Meranti and Sepetir from the current month. Only two species, Balau and Nyatoh have
Light Hardwood Group were among the nine species reported price increases. Both species were marketed at
reported to be experiencing price declines. All of these RM2,059 and RM1,537 per m3, with increases of 13%
species were traded at an average price of RM2,400, and 3.5% respectively. The remaining six species, such
RM3,067, RM1,095, RM2,310, RM1,853, RM1,806, as Keruing, Kempas, and Mengkulang and three Meranti
RM2,134, RM1,705 and RM1,304 per tonne following species, namely DRM, Red Meranti, and Yellow Meranti,
the price drop. Balau, Kapur, Red Meranti, White Meranti, saw price reductions ranging from 1.8% to 15.2%, or
Mersawa, and Nyatoh on the other hand, reported approximately RM35–RM236 per m3. These species
average price increases in May 2023 and were traded at were traded at RM2,587, RM2,013, RM1,424, RM1,942,
RM3,318, RM1,837, RM2,300, RM1,650, RM1,794, and RM2,036, and RM1,318 per m3 in comparison to the
RM1,378 per tonne. The White Meranti species reported previous month.
the highest price increase in this production class of
around 10% compared to the previous month, trading In the scantling production class, 80 percent or 15 of
at an average price of RM1,650 per tonne compared to the 20 species listed recorded the same average price
RM1,500 per tonne the previous month. retention as the previous month. Four species, namely
Red Balau, Keruing, Kapur and DRM experienced price
According to the feedback received, the current market increases ranging from 1.5 to 15.6 percent or around
performance for timber was still not very encouraging, RM30 to RM530 per m3, with DRM experiencing the
as the majority of the species reported to have decreased highest increase, an increase from RM3,390 to RM3,939
prices experienced a decline in market demand. However, per m3. For the record, only Kempas species under this
the current market’s low supply factor and market focus, production class recorded a price drop of around 3.3%
as well as an increase in demand for preferred species or the equivalent of RM88 per m3, and were marketed at
such as Balau, Kapur, Red Meranti, White Meranti, RM2,613 per m3.
Mersawa, and Nyatoh, have resulted in an increase in
prices for all species. PLYWOOD
According to price feedback from the industry, the
SAWNTIMBER average plywood prices of the four main sizes traded in
The average price position for sawntimber products May 2023 did not indicate any price movements. Price
across its three production classes - General Market retention, as reported in recent months has resulted in
Specification (GMS), STRIPS and Scantling - in May the average price of plywood with thicknesses of 4mm,
2023 revealed that most species did not experience 6mm, 9mm, and 12mm being marketed at RM19.40,
price changes, with 45 percent to 80 percent of the 20 RM24.50, RM39.75, and 48.35 per piece respectively.
reference species across the three production classes The highest price of plywood based on the thickness
recording the same price as the previous month. sizes stated remained unchanged from the previous
month, when it was reportedly trading at RM19.40,
The number of species in the GMS class that did not RM25.00, RM41.00, and RM48.70 per piece respectively.
experience price changes was the same as the number
of species that experienced price increases with MEDIUM DENSITY FIBERBOARD (MDF)
nine species each, while the remaining two species The price of MDF panel products in May 2023 increased
experienced price decreases. Red Balau and Mix Light by 5.2–6.8 percent, or around RM1.15–RM2.40, involving
Hardwood in the Heavy Hardwood Group, Keruing, Kapur MDF in 6mm, 9mm, and 12mm thickness sizes, while
and Mengkulang in the Medium Hardwood Group, Dark the price of 4mm thickness MDF remained unchanged.
Red Meranti (DRM), Mersawa, Sepetir and Jelutong in With the reported percentage increase, MDF with the
the Light Hardwood Group, with the highest increase stated thickness was traded at RM23.65, RM31.50, and
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Domestic Trade News
MASKAYU | | Vol 6 / 2023
RM37.60 respectively, while 4mm-thick MDF remained at the previous month’s price of RM12.90 per piece. The highest
reported selling prices of MDF products during the current month were RM12.90, RM26.00, RM37.00, and RM42.00
per piece for MDF 4mm, 6mm, 9mm, and 12mm in size respectively. According to feedback, the price increase is due
to the current market demand, particularly from the furniture sector which uses many MDF products in its production.
Among these three timber products, plywood products saw a 45 percent decrease in volume and a 24 percent decrease
in trade value compared to the previous month, with a volume and trade value of 1,909 m3 generating a trade value of
RM4.10 million. Although the trade value of sawntimber products increased by around 3 percent, the volume traded
decreased by 6 percent compared to the previous month. As a result, the volume of sawntimber traded in May 2023
will be 178 m3, with a trade value of RM0.5 million. Veneer products, on the other hand, saw a 100 percent increase in
the current month due to no trading transactions in the previous month. This month, a total of RM0.38 million in veneer
product trade value was reported through a trade volume of 124 m3.
In May 2023, only sawntimber and plywood products were reported to be traded between regions from Sarawak
to Peninsular Malaysia, with no transaction recorded for logs and veneer products. A total of RM1.59 million was
generated by a trade volume of 1,359 m3 for both traded timber products.
The total volume and trade value of sawntimber products were reported to have decreased by 69 percent and 67
percent respectively in May 2023, while plywood products decreased by 64 percent and 75 percent. Because of the
decline in both value chains, the trading volume of sawntimber products was 104 m3 with a trade value of RM0.25
million. In the current month, the volume traded for plywood products was 1,255 m3, resulting in a trade value of
RM1.34 million.
*Source: Malaysian Timber Industry Board (MTIB) and Department of Statistics Malaysia
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Domestics Trade News
MASKAYU | | Vol 6 / 2023
*AVERAGE DOMESTIC PRICES OF LOGS, SAWN TIMBER, PLYWOOD AND MDF IN PENINSULAR MALAYSIA, MAY 2023
(RINGGIT MALAYSIA)
LOGS/ton SAWN TIMBER/m3
SPECIES
18” UP GMS STRIPS SCANTLINGS
HEAVY HARDWOOD
Chengal 5,000 7,415 4,237 10,946
Balau 3,318 3,055 2,059 3,857
Red Balau 2,400 2,825 2,472 2,489
Merbau 3,067 3,754 3,072 3,725
Mixed Heavy Hardwood 1,095 1,359 1,137 1,282
MEDIUM HARDWOOD
Keruing 2,319 3,263 2,587 2,057
Kempas 1,853 2,232 2,013 2,613
Kapur 1,837 1,746 1,189 1,853
Mengkulang 1,806 1,401 1,424 2,013
Tualang 1,250 2,013 2,002 2,062
LIGHT HARDWOOD
Dark Red Meranti 2,134 2,631 1,942 3,919
Red Meranti 2,300 1,966 2,036 2,299
Yellow Meranti 1,705 1,854 1,318 1,977
White Meranti 1,650 2,507 1,801 1,977
Mersawa 1,794 1,907 1,730 2,154
Nyatoh 1,378 1,613 1,527 1,412
Sepetir 1,304 1,848 1,436 1,779
Jelutong 1,150 2,119 1,589 1,819
Mixed Light Hardwood 1,190 1,352 1,201 1,201
LOGS/ton SAWNTIMBER/m 3
MALAYSIAN RUBBERWOOD
1” X 1” 2” X 2” 3” X 3” 4” X 4”
Hevea brasiliensis 185
1,200 1,310 1,370 1,530
PLYWOOD 4’ X 8’ 4mm 6mm 9mm 12mm
(RM per piece) 19.40 24.50 39.75 48.35
MDF 4’ X 8’ 4mm 6mm 9mm 12mm
(RM per piece) 12.90 23.65 31.50 37.60
Note: Log prices ex-batau. Sawn timber, plywood, MDF and Malaysian Rubberwood (Hevea brasiliensis) prices ex-mill
*Prices are only indicative
Freight Forwarders Expect “Now we have labour disruptions and the Panama Canal
Container Demand Revival In drought, which in normal circumstances would lead to an
2023 uptick in freight rates as they absorb effective capacity,
but any significant price effect is now highly doubtful in
the current market. The combination of factors could
also affect any peak season this year. For shippers this
means that supply chain reliability will deteriorate again,
potentially leading to a “pull forward” on orders. This in
turn will likely “flatten out” any peak season and further
decrease the likelihood of a freight rate increase in the
second half of 2023,” said Roeloffs.
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Shipping News
MASKAYU | | Vol 6 / 2023
route commanding the slight premium. However, the Growth from China and to a lesser extent other emerging
‘second wave’ of covid introduced a new age of volatility, markets in Asia was offset by a small contraction from
with the North Europe corridor racing to spot rates of the United States and much larger ones from Japan,
$14,300 per feu in Q4 2021 – almost $1,000 more than the European Union and especially the United Kingdom.
Mediterranean-bound containers.” Britain’s reputation as the sick man of the global economy
was cemented by the fastest contraction in both import
The swinging spread between the routes had changed and export volumes from February to April, more than
again six months later, where the Mediterranean twice as fast as any other major economic area.
premium reached $2,300 per feu. “The spread then
evaporated, then returned, and has seemingly steadied China’s freight movements have rebounded as the
near the $1,000 mark. Long-term rates have also been country emerged from lockdowns and the exit wave of
prone to similar, dramatic fluctuations, with contracts the epidemic, though not as fast as anticipated at the
from the Far East to North Europe currently around start of the year. China’s coastal ports reported container
$1,600 per feu– $625 less than contracted prices to the throughput rose by 4% in the first four months of 2023
Mediterranean,” said Sand. compared with the same period in 2022, according to
the Ministry of Transport.
Looking behind the rates, Northern Europe imports
from Asia fell by 8% or around 280,000 teu in the first The port of Singapore, which acts as one of the major
four months of 2023, while demand on the Asia - transshipment hubs between China, the rest of East
East Mediterranean route rose by 21.9% or 195,000 Asia and Europe, also reported an increase in container
teu, with a lesser 2.3% demand increase on the West throughput of 3% in the first five months of 2023. But
Mediterranean route. in other regions freight remained lower than a year ago,
as consumer spending rotated from merchandise back
“It’s been a wild rates ride and, while things seem to to services after the pandemic, and rising interest rates
have stabilized, it’ll be fascinating to watch further hit spending on durable goods by both households and
developments as the traditional Q3 peak season firms.
approaches,” said Sand. Med routes currently show
higher spot than contract rates, while the opposite is Traffic at seven of the nine major U.S. container ports
true for Asia – Northern Europe. “For further ‘health (Los Angeles, Long Beach, Oakland, Houston, Charleston,
checks’ on the trades we can look at current blank Savannah and Virginia excluding Seattle and New York)
sailing data. Here we see almost non-existent blankings was down 16% in the first five months of 2023. The
into the Mediterranean, while between five and 13% of number of shipping containers hauled on the major
capacity is blanked from the Far East to North Europe.” U.S. railroads, many en route to and from the ports, was
Sand’s outlook for the route was one of caution. “Our down by 10% in the first four months of 2023, according
data shows the Far East – Mediterranean route’s relative to the Association of American Railroads.
strength, but relative is the operative word here. Looking
at how rates have fallen from their peaks a year and a Truck tonnage movements were also down by a little
half ago, we see a dramatic transformation in fortunes. under 1% compared with the same period a year earlier,
Yes, we’re seeing strong demand into the Mediterranean based on data from the American Trucking Association.
this year, but all that’s achieved is a slowing down of the At Japan’s Narita airport, international air cargo was
rates decline, rather than a turnaround,” said Sand. down 25% in the first five months of 2023 compared
with a year ago. Freight through London’s Heathrow
Source: seatrade-maritime.com June 22, 2023 airport was down 8% in the first five months of 2023 at
the lowest level since the pandemic in 2020 and before
Global Container Freight Stuck In that the financial crisis and recession in 2009.
Doldrums
Some freight is likely to have been shifted from air to sea
Global trade remained in the doldrums during the second as supply chain bottlenecks ease and shippers focus on
quarter as China’s post-lockdown rebound proved cost control, but the downturn in merchandise shipments
slower than expected and was offset by continued is unmistakeable across the advanced economies. The
weakness in North America and Europe. most optimistic interpretation is that freight volumes
Seasonally-adjusted trade volumes were no higher in have stabilised, after declining sharply in the second half
the three months from February to April 2023 than they of 2022, but there is no sign yet of a recovery outside
had been 17 months earlier in the three months from China.
September to November 2021. Volumes were down in
three of the first four months of 2023 compared with Source: reuters.com June 26, 2023
a year earlier, according to the Netherlands Bureau of
Economic Policy Analysis. (“World trade monitor”, CPB,
June 23).
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Timber Species
MASKAYU | | Vol 6 / 2023
ENGKABANG
Other Name:
i. Kawang (Brunei)
ii. Tengkawang (Indonesia)
Family: DIPTEROCARPACEAE
Abstract
Shorea macrophylla is also named as ‘Engkabang’
(Iban), ‘Kawang’ (Brunei), and ‘Tengkawang’ (Indonesia). Engkabang Wood Identification
It belongs to the Dipterocarpaceae family and is
categorised under the genus Shorea, which can be found
in tropical rainforests in Southeast Asia. It prefers wet
habitats, such as in periodically flooded alluvium and
riverbanks. The tree size of S. macrophylla is medium or
large; however, some researchers in Kalimantan claim
it is a small tree. The flowering and fruiting systems
of most Dipterocarps, including S. macrophylla, are
irregular, but there is a massive flowering event once
every few years. Its genetic structure is characterised
by moderate genetic diversity within species and
populations, as well as high genetic differentiation within
local populations. Shorea macrophylla, also known as
the Light Red Meranti, is a suitable timber supply for light
construction work. It produces illipe nuts that are widely
used as cocoa butter replacer fat. Wildlife eats the ripe
illipe nuts, which contain a high oil content with mostly
beneficial unsaturated triglycerides. The fat extracted
from the nut is suitable for cosmetic application as it
provides a good moisturising effect. Future investigation
into the illipe nuts’ composition and other potential uses
should be carried out.
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Timber Species
MASKAYU | | Vol 6 / 2023
The only problem with using S. macrophylla as a reforestation subject is the difficulty in obtaining a huge amount of
readily available seeds because their viability is limited and they are mainly found in forests, and sampling is more
difficult than those available in nurseries (Chai, 1998). Based on Tsumura et al. (2011), the amount of tax paid for
imported wood is determined by their classified group, with S. macrophylla belonging to the Red Meranti group being
among the highest tax timber. However, some Shorea species have been misclassified, resulting in a lower tax rate
paid than it should be. Although identifying Shorea wood can be done by the well-trained and experienced in just a few
days, DNA analysis is recommended for a more accurate and convenient identification among species (Tsumura et
al., 2011).
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MTIB Moments
MASKAYU | | Vol 6 / 2023
6 June 2023 - “Program Trek Komoditi” for the Northern Zone of the Peninsula
10 - 14 June 2023 – “Program Peningkatan Kemahiran Kursus Laser Cut” at Tawau Sabah
13 - 16 June 2023 – “Kursus Suaikhas Aplikasi Epoxy dalam Pembuatan Perabot” at WISDEC Selangor
18 June 2023 - Malaysian Wood Expo (MWE) 2023 at MITEC, Kuala Lumpur
32